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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: JDN who wrote (10850)	8/7/2000 5:21:30 PM
From: Gus	Respond to of 17183

Good point, JDN. In addition to more aggressive action in the middle market by EMC and the rest, NTAP shareholders should start paying attention to its disk drive suppliers who are already projected to grab close to 20% of the low-end market this year despite the fact that they only started their NAS initiatives late last year. As has been discussed before, EMC is gaining momentum in the high-end and the middle-market so that leaves lot of room for chronically unprofitable disk drive suppliers to make money in the lo-end NAS (DSS, MXTR, WDC, SEG) and caching business (SEG/Cobalt). Over 70% of global disk drive production comes from Asia, which is also expected to be the world's largest wireless market due to its low teledensity. As you can see from the storage requirements of a supercarrier like DoCoMo, the opportunities are certainly there for the disk drive industry to permanently blend 30-40% gross margins from storage networking with the anemic 10-15% gross margins of the drive business. It's inconceivable to me that that even the drive industry could miss this opportunity.